Inherited 0.5 acre lot in town - single family homes or duplex?

[Matt Kittel]

Hi, I'm new to real estate but figured this is the best opportunity to get into the game. I've inherited a 0.5-acre lot in the middle of an unincorporated, rural town and I'm not sure what to do with it. What would you do?? What are some of the zoning/regulatory pros and cons between single homes, duplexes, townhomes, and apartments?

Here's the scoop:

Barelot (no electrical or septic) was appraised for $70k but had an offer for $100k. It's surrounded by a mix of residence types. There is a quadplex and a few trailer homes to the east, single-level homes to the south, a single residence on half an acre to the west, and an 8-unit apartment building to the north. The best mountain views are toward the north (so away from the trailer homes). The nearest university is 45 min drive away in the city.

In town comps - two old 1930s homes on half-acre lots selling for $309k and $399k (1500 sqft). A couple of trailer homes for $260-$275k. This past spring, someone built and sold a string of six 1200 sqft two-story homes sitting on 4,000 sqft lots up against the highway for $400k a pop. Same person built four more, and one is still on the market for $424k ($278 price/sq ft). I think the average rent in the area is $800-$1400, so hard to know because there are no listings. 

10 minutes away is a much larger town. In-town comps: 1500 sqft Duplexes ranging from $360-399k ($308 price/sqft and $284 price/sqft, respectively). 1700 sqft Single Family homes ranging from $540-$570 ($341 price sq/ft - $315 price sq/ft, respectively). 

Here's my situation: I live 3 hours away with a good career job. I've got $200k to deploy. Would prefer to cash out and throw the money at stocks, but am open to renting out and using a rental management service to help. Ultimately, this is my hometown, and would like to improve it. Would hate to see more trailer homes on the lot if I sold out. 

Back of Napkin calculations: 

Triplex: 3 bed, 2.5 bath Triplex w/garage ~ $628k total cost to build ($143 cost to build sq/ft). Sell each for $374,$349,$374k = $469k max profit. Worst-case emergency scenario should be able to easily dump these for $250k. I don't think a second set of these could fit. You'd have to go with a string of town homes, a fourplex, or two sets of duplexes. Renting: if I loaned out $428k payment would be $3,000/mo. Breakeven is $1k/month rent. Being that they're new builds, I'm guessing I could rent for $1,500 - 2k at most? It's a low-income town though. Looking at a $1500-$3000 profit/month depending on rental rates. Not sure if I could get $2k/month. 

Duplex: 3 bed, 2.5 Duplex w/garage ~ $418k total cost to build ($143 cost to build sq/ft) and sell each for $374k. max profit $330. However, the advantage here is that I could do this in two phases, wait for phase 1 to cash out before building phase 2. Also, I wouldn't have to discount the center unit and could use a bit more of the lot. Max profit of $660k over the course of a 3-4 year period. Rental: assuming Phase 1+2 happens at the same time and similar ideas as the triplex rent, I'd have to loan out $637k at $4500/mo. Breakeven is $1,125/month rent. Looking at $1500-$3500 profit/month. Upside is a little better than the triplex rental idea, but riskier. 

Two Single Family Homes w/.25 acres: 3 bed, 2.5 w/garage ~$288k to build each ($195 cost to build sq/ft). Sell each for $499-$524k. Max Profit $422k - $472k. This has the positive effect of improving the town. However, may not be as affordable to buy for most people in the area. Rent: The mortgage would be $2,761 for both, and breakeven rent = $1,380/mo. Max profit $240-$1,240/month. This is a bad rental idea in my mind...unless the strategy was to rent for a 5-10 year horizon, and then cash out. Also, I could always move into my own unit if my life circumstances changed. 

Apartment complex: ...no idea. Possible low-income housing opportunity. The town fits. But would have to hang on to the project for a minimum of 30 years to keep the tax incentives, right?

That's all my ideas right now! Would love to get more insights from others! Do I have to subdivide if I do duplexes? I'm assuming the city might want me to make certain public improvements to the area if I did duplexes or town homes. 

Thank you!